Molson Coors reports 2% decline in Q4 sales
USA – Molson Coors Beverage Company has reported a 2 percent year-on-year decline in fourth-quarter FY24 sales, reaching US$2.73 billion, but managed to beat analyst expectations of US$2.70 billion.
The decline in revenue was primarily due to lower financial volumes and unfavorable foreign currency impacts, partially offset by a favorable price and sales mix.
By region, net sales from the Americas segment dropped 2.6 percent on both a reported and constant-currency basis. In contrast, net sales from the EMEA & APAC segment increased by 0.4 percent, supported by positive foreign currency impacts and pricing strategies, though partially offset by lower financial volumes.
Despite the revenue decline, gross profit grew by 0.4 percent year over year to US$1.04 billion, while operating income surged by 94.7 percent to US$388.1 million, resulting in an operating margin of 11.9 percent.
The cost of goods sold (COGS) per hectoliter increased by 3.2 percent, attributed to inflationary pressures on materials and manufacturing expenses, an unfavorable mix in both segments, and volume deleverage in the Americas.
Chief Financial Officer Tracey Joubert highlighted the company’s focus on profitability and financial flexibility, stating:
“We continued to enhance our profitability and financial flexibility in 2024. We ended the year with a net debt to underlying EBITDA ratio of 2.09 times, in alignment with our long-term target of under 2.5 times.
This, along with our strong cash generation, enabled us to invest in the business in ways we believe drive sustainable, profitable growth while returning cash to shareholders through a growing dividend and share repurchases.”
Underlying earnings before taxes (EBT) declined 1.4 percent year over year to US$341 million, with a 0.9% decrease on a constant-currency basis, reflecting reduced financial volumes and cost inflation in materials and manufacturing.
Additionally, on January 29, 2025, Molson Coors paid US$60.6 million to Stone Brewing Company as part of the final settlement of the Keystone litigation case, an amount that had already been accrued as of December 31, 2024.
Looking ahead, Molson Coors expects underlying EPS to grow in the high single digits in 2025, with mid-single-digit underlying EBT growth on a constant-currency basis.
The company projects depreciation and amortization costs of approximately US$675 million, plus or minus 5 percent, and an effective tax rate of 22-24 percent for 2025.
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